Why has there not been greater development of US geothermal capacity?
The development of geothermal power thorough the 1990s has been impeded by two factors: location and cost. In respect of location, most geothermal reservoirs are located in the Western States and specifically in areas which enjoyed excess electrical capacity. For example, Raft River in Idaho and the Newberry Caldera in Oregon are within the Bonneville Power Authority (BPA) system, which distributes hydropower from the Columbia River dams. Local electrical distributors like Idaho Power, and Pacific Power could service their clients by purchasing from the BPA the lowest cost electricity in the USA. In respect of costs, prior to recent technological advances, the cost of developing geothermal reservoirs, building generators and operating them was between 6 cents and 8 cents per kilowatt hour (Kwh). The major sources of new electrical power generation in the 1990s and until recently was coal and natural gas. These sources were competitive in the 4 to 6 cent per Kwh range.
